Here’s how Bitcoin and Ethereum could perform in the month of September
During the early trading hours, Ethereum briefly fell below a crucial support level, extending ongoing declines that have been underway for the past few days. Most of the top 100 cryptocurrencies fell during Monday’s selloff, and at the time of writing, the market cap of all assets was down 1.61%. Bitcoin has also dropped and is now trading just below $21,000.
Investors in the crypto bear market are now looking to price charts to find comfort in patterns after a long and cold winter. The two most valuable cryptocurrencies, Ether (ETH) and Bitcoin (BTC) have been hemmed in for more than a month around their lower support levels.
Will the ETH Merger Improve Crypto Conditions?
In a recent interview with CNBC’s Squawk Box, Meltem Demirors, CSO of CoinShares, explains that there is a general summer slowdown in the cryptocurrency space since many people are not actively trading while on vacation.
In her analysis of Bitcoin, Demirors states that she does not expect much growth between now and the end of September.
She warns that enthusiastic investors may see the upgrade in a vacuum that ignores the broader market dynamics, as people increasingly turn their attention to Ethereum and the clamor surrounding the expected shift in mid-September from proof-of-work to proof-of-stake.
She also mentions that while the merger will undoubtedly make Ethereum a better operational project, she doesn’t necessarily expect huge inflows of investment capital to drive ETH’s price stratospheric.
What’s Next for Bitcoin and Ethereum
After a recent 17% drop to $21,283, Bitcoin is consolidating tightly. If the $20,750 support level is breached, there could be a 15% sell-off to the $17,578 bottom. However, a sweep of $20,750 and a quick recovery could lead to a 12% rise to $23,175.
Following Bitcoin’s lead, Ethereum fell by approximately 19% between August 18 and August 20. However, the recovery seems to be shorter, as ETH is already on the way back. Investors should anticipate a slight rise to $1,675 to fill the inefficiency and cause a reversal at this point.
However, this move could go all the way up to $1,730 and build a local top there before reversing and continuing the downtrend. Regardless of the location of the local top, the price of Ethereum is set to retest the imbalance to the downside at $1,474.
According to the aforementioned scenario, the major altcoins may experience a bull run in Q3. However, a quick sweep followed by a recovery seems a likely outcome if capital is split between BTC and ETH.
